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Should You Consider Investing in Boot Barn Holdings Inc. (BOOT)?

·3 min read

Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 10.95% was recorded by the fund for the Q1 of 2021, trailing the benchmark, Russell Microcap Index, which rose 23.89% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Wasatch Micro Cap, in its Q1 2021 investor letter, mentioned Boot Barn Holdings, Inc. (NYSE: BOOT), and shared their insights on the company. Boot Barn Holdings, Inc. is an Irvine, California-based western and work-related footwear, apparel and accessories retailer that currently has a $2.1 billion market capitalization. Since the beginning of the year, BOOT delivered a 72.05% return, extending its 12-month gains to 281.20%. As of May 07, 2021, the stock closed at $74.60 per share.

Here is what Wasatch Micro Cap has to say about Boot Barn Holdings, Inc. in its Q1 2021 investor letter:

"Another strong stock in the Fund was Boot Barn Holdings, Inc. (BOOT). The company is a retailer offering Western and work-related apparel, footwear and accessories. Boot Barn has benefited from its economies of scale and multichannel business model, which kept revenues flowing during shutdowns from Covid-19. Stimulus payments by the federal government to consumers appear to have helped as well. The company’s private-label brands, built around well-known personalities in the music business, have enabled Boot Barn to convert a higher portion of its sales revenues into bottom-line profits."

Boots
Boots

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Our calculations show that Boot Barn Holdings, Inc. (NYSE: BOOT) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Boot Barn Holdings, Inc. was in 20 hedge fund portfolios compared to 13 funds in the third quarter. BOOT delivered a 25.15% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.